Suppose the own price elasticity of demand for good X is −5, its income elasticity is −3, its advertising elasticity is
Posted: Wed Jul 06, 2022 6:18 am
Suppose the own price elasticity of demand for good X is −5, itsincome elasticity is −3, its advertising elasticity is 3, and thecross-price elasticity of demand between it and good Y is 5.Determine how much the consumption of this good will change if:Instructions: Enter your responses as percentages. If you areentering a negative number, be sure to use a (−) sign.
a. The price of good X decreases by 6 percent. ? percent
b. The price of good Y increases by 7 percent. ? percent
c. Advertising decreases by 4 percent. ? percent
d. Income increases by 2 percent. ? percent
a. The price of good X decreases by 6 percent. ? percent
b. The price of good Y increases by 7 percent. ? percent
c. Advertising decreases by 4 percent. ? percent
d. Income increases by 2 percent. ? percent